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Boston 30, Us 14, S&p 9, Chicago 8, Spiriva 6, Washington 6, U.s. 5, Goldman Sachs 4, Douglas 3, Molly 3, Copd 3, Douglas Holtz-eakin 3, Sears 3, Nicole Petallides 3, China 3, Nicole 3, North Korea 3, Siemens 2, Reuters 2, Liz Claman 2,
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  FOX Business    Markets Now    News/Business.  
   Business news. New.  

    April 16, 2013
    1:24 - 2:55pm EDT  

really the opportunity that we seek. as far as the value proposition right now, we are getting a real alignment in the industry. the cost of production is about 1350 an ounce. right now with it at 1385 or so, we are at basically the cost of production. this is an attractive point for investors to enter. lori: there is an article, hedge fund manager. he was sitting back affecting inflation. are we in a diversionary environment? >> obviously the world is very dynamic.
we have the report from china that their growth was not as robust as expected. economic act two that he is not quite as robust to support this type of equity market. there are concerns that confidence is fading on the u.s. federal reserve monetary policy as well. >> i think that is part of it. i think what you observe in a marketplace is at the asian market is still very interested in gold. they are very active in this cold environment. earlier this year, the indians were a little bit challenged. this clearly opened up the window for them. lori: let's talk about some of these gold mining stocks.
a lot of people were concerned about the gold mining companies. getting back to your discussion with me on production costs versus -- do you think they are on a more bullish trajectory? >> i think we are getting a realignment that is a positive for the industry. lori: would you put new money into shares? >> not a position for us. lori: i appreciate your take. thank you. melissa: will the deadly boston terror attack change the tone? stephen moore is here. lori: let's take a look at who is moving the markets. they are all higher at the moment. all 30 issues.
the dow itself, the index up 100 or virginia points. we will be right back. ♪
. ..
. .. melissa: time for stocks now as we do every 15 minutes. let's head to the floor of the new york stock exchange. our own nicole petallides is standing by. nicole, stocks are in rally
mode. we're up about 140. >> pretty impressive on a day after what we saw yesterday late in the day particular as we had the terror attack in boston. we saw the stock market drop precipitously at end of the day, 265 points at the end of the day going int different . we're getting some of that back, paring the losses. we're up 140 points a majority of stocks are doing well. we've seen names coming out with earnings such as johnson & johnson and coca-cola helping the dow along. one name came out with their report, goldman sachs down 1.8% because of their first quarter numbers. one thing they did say the revenue they're seeing from client trading that actually fell about 10%. that raises obviously concerns going forward. we've seen some of the financials mixed. other names are doing quite well but you are seeing goldman sachs to the downside after what we saw there. year-to-date it is still a
winner. it is up 1% this year. back to you. lori: nicole, thank you as always. we want to keep up to date with the latest on the boston attacks. boston police giving an update on number of people hurt in yesterday's attacks. 117 wound, 7 people are critically wounded and two three people were killed. no unexploded bombs have been located. a saudi national has been taken in for questioning as quote, pen of interest for the bombings. boston police said now no one is in custody. a little an hour ago the president speaking on the boston attacks calling the bombings an attack of terrorism. how the attack may impact american business, our economy and our nation's capitol and overall national security. steve moore from the "wall street journal" wonderful to have you in studio. the politics dealing with the aftermath of a terrorist attack? how does it improve the tone
of partisanship in washington. >> anytime you have a national attack like this people pull together. i was thinking of the two major issues in washington. lori: immigration and gun control. >> those are two we've been hang link over months and months if not years. that is interesting i think it could have negative impact on both issues. lori: how so. , if it turns out it is saudis or foreigners, it will, it will, play into this kind of nativist, keep the foreigners out mentality. that is going to be a negative thing. in fact some of the senators and congressmen already said that maybe we should slow down on immigration reform. lori: wow! all the debate on immigration was held behind closed doors with the "gang of eight". that itself was critical because of the lack of transparency. >> interesting just today the "gang of eight", the eight senators drafting this bill, publicly came out with
their draft version of the bill and so we're finally starting to make some progress on this i'm very pro-immigration reform. i really think we need to do it. i think this slows things down a little bit. on the gun control issue, i think a lot of people will say wait a minute, this is a major attack. there were no guns involved in this. is this really the time to be disarming people or making it harder for people to own guns? i'm not saying this will stall these things all together but i think it may slow them down. lori: will it, to get in the weeds with you, influence seven or eight republicans in the senate to pass the manchin-toomey bill? >> it could. people say, wait a minute. what this reminds us of violent acts can be done in a lot of ways other than guns. lori: interestingly raises a lot of questions, attack about the sequester. you do have democrats, house democratic caucus chair saying this morning we know first-responders are being cut. we know community policing is being cut. we know health care services
especially emergency health care services are being cut. you know where this is going. the quote is quite long.
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melissa: we have more breaking news right now. reuters reporting american air lirps halted nationwide depart tus until 2:00 p.m. eastern time. american eagle, regional flights at dallas-fort worth, laguardia and chicago o'hare reports also halted until 2:30 p.m. i think we meant reuters was sourcing that. they're reporting american airlines halted nationwide departures until 2:00 p.m.. if you have a flight, better check. lori: what an inconvenience. all right, social media has
had a huge impact on all are our lives in the wake of the disaster the importance of this new tool can not be ignored. our own shibani joshi has been doing reporting. hi, shibani. >> it proves value of social media, twitter and facebook, what the sites have been able to do with information over the last 24 hours, blasts were heard and captured on video cameras through tweets on the web. this is all before news participant in the marathon, using foursquare, his own company, checking in every mile he crossed and using twitter chronicling what happened at mile 26. fyi, no one at mile 26 has no idea what is happening. moments later, rumor the rest of the race is canceled. no cell phone service. lots of rumors. can't get texts. that is how we learned what was happening in boston. big technology firms as a whole also responding in the wake of what happened in boston. google for example, updating its people finder website to
allow people to find loved ones and find one another. this is a site that has been up a couple of years. the company putting it out there in natural disasters and big events like the one we had yesterday. this as all, as cell phone service was disabled yesterday, or, because of overloading of service. at&t, verizon and others had a little bit of a signal issue. so people were turning on their wi-fi and updating their social networking sites and that is how information got around. melissa: you know, shibani, it is so interesting. just last week we were talking about the irs using software to mine twitter and facebook, to look for certain things. it seems like now we could see it maybe playing a role in helping law enforcement look for clues and find answers. >> absolutely. we've seen a growing importance of sites like twitter and facebook and others in the uprisings in the middle east and the wake of hurricane sandy and even
like yesterday. the challenge though is, -pseparating the authentic from the inauthentic. that is something that social networks and the media still has a very important role in doing. there was a lot of false information that was posted yesterday. and things that just were inaccurate in social media tend to proliferate and get false information out. po it doesn't have the best filtering you could say just yet. lori: that's the problem. the false information. who is editing this. all this information just sent out there sprayed out there and sometimes especially when the event just happens it is hard sifting through what you need to know what is useful. that is fascinating sign of that's for sure. >> thank you. lori:. melissa:. lori: for the five highest paid executives believe it or not at s&p 500 work for one company and that one company is apple. according to the latest compensation filings with the sec coming in fifth on the list, making 68.6 million, apple's chief financial officer, peter oppenheimer.
fourth place, senior vice president jeffrey williams raking in 68.7 million bucks. coming in third, lead attorney, bruce sewell with $69 million. number two on the list and highest paid apple executive is senior vice president bob mansfield who made $85.5 million. only one exec beat out the apple gang, that was oracle ceo larry ellison. his total comp last year, shy of one billion dollars. 92.6 million. melissa: good to be larry ellison. a terrorism expert and university of proprofessor and a former nsa officer. he will join me to go over the cost of fear in regards to yesterday's bombings in washington, whether it was domestic incident or not. how does that fear affect the business and the economy. that is tonight at 5:00 p.m.
eastern. lori: the boston bombings could lead a economic slowdown. that is the warning from former cbo director, douglas holtz-eakin. we could be hit with an individual security tax. he will explain when he joins tracy byrnes and adam shapiro the next hour of fox business. don't miss it. [ male announcer ] in your lifetime, you will lose 3 sets of keys 4 cell phones 7 socks and 6 weeks of sleep but one thing you don't want to lose is any more teeth.
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(train horn) er vo: wherev our trains go, the economy comes to life. norfolk southern. one line, infinite possibilities. tracy: good afternoon, i'm tracy byrnes. adam: i'm adam shapiro. stocks are recovering from their biggest drop of the year monday which was made worse by the tragedy at the boston marathon. the dow is up 125 points. tracy: gold also rebounding from its biggest one-day loss in more than 30 years but oil continues to fall, trading below 80 bucks a barrel. how low will it go? we'll ask a commodity expert. adam: former cbo director douglas holtz-eakin warns we could be headed for a economic slowdown as more money will be spent on security than innovation.
he is going to be our special guest. tracy: that's a great point too. it is top of the hour. time for stocks now. we head down to nicole petallides on the floor of the exchange as we do every 15 minutes. with we are in rally mode. >> pretty unbelievable here. reason for concern late yesterday. we saw markets selling off dramatically going into the closing bell. we were down 265 points yesterday on some very heavy volume. today a different picture though. we're gaining back some of that at least. we're up 125 points. we're off the highs of the day. still you are seeing retail stocks, drug stocks, bank stocks all with up arrows. the tech-heavy nasdaq is the best of the three intoday tease we follow closely up -- indices, we follow closely. gold is up some. we should note what we see in earnings, of johnson & johnson and coca-cola. both are leading the dow jones industrials. they have been being at thatting on points to the dow. both beat the street and are looking good. coca-cola at an annual high,
multiyear high. you can see it is up 5.25%. also making a dealer with bottlers. johnson & johnson doing well with over the counter drugs and drugs for hepatitis-c and or johnson & johnson. back to you. tracy: theyfor a while, right? we were in passive mode. now all of a sudden it is a wake-up. good to be with you too. look what sam stovall, he is with s&p capital iq. he says until the suspect is caught people are definitely going to be on edge. another reaction from chip cobb with raymar trust. we hope boston is a singular event. we have the president of planned financial services. look at this. he says it won't have any bearing on the market. that north korea is a bigger effect on market. and worldwide volatility is more to do with worldwide
volatility. according to sec filings, increasingly companies are worried about north korea. there are more disclosures about north korea in sec filings. a jump of 29% for the first quarter of this year versus a juor beating expectations. that is the nail of the game right now, guys. tracy: do you think we're numb to it, liz? >> numb to it? when you talk to the guys on wall street, they are serious, this is according to one analyst who is not being global in perspective. he is just saying this may be an event that we will have to live with as ireland did, northern ireland, with bombings. it is not saying that is something that is great. he is not applauding it. of course he is not saying i know or have any inside information. tracy: of course. >> i didn't mean to say applauding it, that he has information as if he knows better. this is the reality of the marketplace, what the general public will have it deal with and of course the markets as well. tracy: interesting, especially based on the way
the markets reacted today.with s bottom line. adam: thanks. joining us with more on the story about terrorism is terrorism expert michael kushner and chairman of the holland and company running yesterday in boston's marathon. let me start with you, michael. thanks for joining us. where were you on the route? had you finished when the strategy struck? >> we were at the 20 mile point, something called heart break hill, which is near boston college at that time. what happened, adam, spectacular morning. beautiful day for the marathon. everyone was having a wonderful day and the, all of sudden sirens started going off and motorcycle cops went flying by. some more cruisers and then, the age of smartphone we knew within seconds there had been a couple bombs that went off. almost immediately the incredible response from police marathon officials,
they closed down the marathon. adam: sure. >> immediately. it was, the worry was that there were more packages along the way as you reported a second ago. it turned out not to be case. adam: right. >> the worry was there was more. they did a spectacular job of getting everything shut down immediately and, we, you know, we unfortunately had instant news what was going on. adam: sure. michael, we're grateful that you're okay. i want to come back to you, i want to ask you as a businessman how you get back to business after a tragedy like this. let me bring in dr. harvey kushner right now. you're an expert on terrorism as we learn some of the details. this is pressure cooker device. does that definitely indicate something that might have came from overseas? we've seen these devices used. they seem to have lack of a better term a fingerprint, do they not? >> yes, we call it a signature. there are three things which occur here lead me to believe it is international. the first is, absolutely the fact that it is a pressure
cooker. we've seen that type of device used in afghanistan. that's one. the second they have to vilify y nationality giving out that information. so that is the second. the third is the change in the wording that the president used. yesterday he was very careful with his words not to mention terrorism. today in his speech he called it an act of terrorism. adam: but two things. to in response to whatrice doin, was trained by somebody doing it before. as well as saying it is a person of interest. that is political correct talk for achl, let me ask you this, the business aspect of this, how do you get back to business especially someone like you you were there when this tragedy transpired. you have to go on with your life but how do you do that? >> well the same way as back in 9/11 walking up park avenue, that beautiful morning, once again a beautiful day and having the world change dramatically at that time. you acknowledged that there are bad people out there who are going to do things like this and you say how do you change? well the change is, you
acknowledge that they're there and go about your business. as the british did and irish did, you say that these things are possible. you did the best you can to minimize them you about, as doctor kushner was just saying, a second ago, you acknowledge what they are and, you, you move on. so i think, i think, for me, it's, it is a very sad moment but one that, while a game changer for the boston marathon it doesn't mean that we change our way of living. adam: let me give dr. kushner on the last word on this. what will be the next phase of the investigation? they have fragments of the device. what happens next? >> there was no chatter before the event or after the event. they have many cameras there and many film. the world was focused in on that. in events like these, wait, two or three days something entirely different can happen from what we think is happening now. adam: thank you, for joining us here on set. and michael holland, thanks for joining us from boston. all the best to you. we are grateful that you
were not injured. tracy: all right. still ahead, we're going to continue to bring you more of the latest on the boston marathon bombings. we'll hear from former cbo director douglas holtz-eakinidl security tax. adam: also oil, is sliding again. it is trading below 90 bucks a barrel. we're live from the cme with a look how low it will go. first as we try to do every time around this time of day, let's take a look how metals are trading.
tracy: oil continuing its slide for the fourth straight session, trading below $89 a barrel. that is prices we haven't seen since september. sandra smith in the pits of the cme with today's trade. how far is it going to go? >> the fact that we're now below 90 everything is in
question. can we fall below $80 a barrel? what does it mean for gas prices? there is lot of talk that the national average could come down shortly considering that oil prices are now 88.85 a barrel. down a fourth straight session. right now hitting the lowest levels of 2013. if we were to close where we're trading right now, this would be the lowest levels of the year. by the way in trading terms we often like to look what happened on the week. it is down 7% over the past week. on the month down 9%. for the year oil prices down 4%. here's the news. american petroleum institute at 4:30 p.m. eastern time. they will come out with the latest inventory numbers. we're expected to see another build of oil inventories up more than a million barrels in the latest week after last week, over five million barrel build. so, this is a sign that we're not using as much oil right now. the u.s. and biggest consumers of oil in the world. this is still reflection of the global slowdown. by the way, when you're
talking globally you have to look at the price of brent crude oil. remember we're always watching that spread. brent is usually more expensive than wti. that spread is narrowing. it narrowed for eight straight weeks up until last week. it looks like narrowing again. brent crude trading items they e had been hoping to sell. so this current quarter they said is going to be weak. they backed full-year numbers about. on day with up arrows the stocks are to the downside. they came out with their numbers. obviously when you look at fold man, you see the down arrow after their earnings, but the ref you in from their client trading fell 10% and that obviously raises some concern about what we've been seeing here. that accounts for all of revenue that they have seen over the last four years, about 60% of the revenue. so obviously they don't want to see their client revenue drop like that. that is why you're seeing a down arrow for goldman. adam: nick -- nicole petallides see you again in
15 minutes. tracy: we'll hear from a market strategist who says it is not a good time to buy or sell. see what he is doing with his $40 billion under management right now. adam: look how the dollar is moving. seems to be falling against the euro and other currencies. ♪
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adam: police and fbi agents are racing to find out who is behind the boston bombings but as of right now they have no suspect in custody. fox's molly line is on the ground in boston and she joins us with an update on their investigation. molly? >> adam, there are a lot of unanswered questions. it is just beginning. still just about 2 hours since this event occur, since the two bombs went off here in downtown boston at the end of the finish line of the boston marathon. investigators are trying to piece things together. they are speaking with someone previously described as person of interest. a individual from saudi arabia. here on a student visa, in a local hospital injured at the scene. now they are saying he has been very cooperative. he may not actually have anything to do with this bombing. they actually have actually searched his apartment in
nearby revere, a community just outside of boston and his roommates have spoken to the press. there has been a lot of focus on that but it turns out investigators are not entirely sure he may have anything to do with this. he could be feasibly a witness at the scene over the course of these events unfurling over the, in the recent 24 hours or so. also worth noting the casualty numbers. there are three deaths of the they have identify a 29-year-old woman as another victim of this tragedy. 176 people injured. multiple casualties. still 17 people in critical condition. adam being back to you. adam: fox news channel's molly line in boston. thank you. tracy: 176. stocks are bouncing back from their biggest one day drop of the year is it time to jump in? our next guest just doesn't think so. nick sargen, chief eninvestment officer at fort washington advisors. he oversees a mere $45 billion in assets. nick, thanks for being with
us today. you don't seem to think yesterday was the beginning of any kind of a pullback, do you? >> no. the principle reason is, we have had these one-day pull backs in an amazing bull run but, you know, i said, i'm going to take a stab and my hunch was we would see a bounce-back. indeed we have. so it tells me, i think what is going on in the commodity markets is fundamental shift. i don't think it is bad for stocks but, i'm not worried about a huge pullback in the market. but, you know what i was saying about not adding. our call at beginning of the year i thought we would test high, all-time highs. we got there a lot quicker than we expected. that is the big surprise. it was on the back of a firming economy but now the reason that i don't want to jump in now is, we are seeing some signs of evidence, certainly of slowing growth abroad and maybe it will spill over into the u.s. a bit. tracy: so, you know, if
asked buy, sell or hold, you would say hold. >> yes. tracy: let's ask you what the commodity market is telling you? what is it screaming out about the overall equity markets? >> well, i would actually go back and think it is telling us two things. one, that even though, i think the u.s. economy is holding up better than most people expected. tracy: yeah. >> but the rest of the world is softer. i think the surprise was, the china slowdown story. now put that in context, do you really get upset that china grew 7.7, instead of 8 and change? tracy: exactly. >> i don't think it's that. i think what is going on more people capitulating to notion that china can grow at ten. i think that is what we're seeing as a capitulation. the other thing, inflation worldwide has not been rearing its ugly head. in fact it is coming down. it is down a full percentage point globally in the last 12 months to 2 1/2%. tracy: so the gold thing doesn't really bother you, right? it is more about what is happening here at home.
interestingly you're overweighting the financials. that actually says something to me. >> yeah, well, taking into account two things. number one, we have value oriented vest, to. i think the broad market is fairly valued. financials, are still one of the cheaper sectors in the markets. so we have that bias going for us. i think the second thing is, it comes down to the call on the economy. i'm in the camp that the private sector of the u.s. economy is improving. so being in financials is a leverage play on playing the private sector of the economy. i think that is the second component. tracy: but there still is this huge dichotomy between the actual main street economy and wall street, right? so when eventually do they all come together? >> well, you know, for those people, there are a lot of people who come to me and say, i'm not telling a story that the u.s. main street looks great. i'm telling a story that says main street is better off than it was a few years ago and we're healing.
we're in the process of healing. tracy: yeah. >> wall street is not just keying off the economy but corporate profits. and corporate profits are up 50% from 2007. and everybody's been or worried about corporate profits going forward. and i like that. you're climbing the wall of worry. you're beating lowered expectations for the markets. so my argument is that the stock market is really a barometer of the corporate sector. tracy: sure. >> not main street. tracy: you might as well make money while it he is going up. nick sargen with fort washington investment advisors. you have to be in it to win it, right? thank you, sir. >> thank you. adam: coming up the economic fallout from the boston bombings. former cbo director douglas holtz-eakin tells us why yesterday's events could lead us to a economic slowdown. tracy: let's look at winners and losers on the s&p 500. jcpenney up today. who would have thought. of course coca-cola, have a
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>> you know how american airlines scored lowest for on-time arrivals out of 14 airlines. this will not help. we have an update on problems at american. all flights grounded due to computer problems. initial reports say departures halted until 3 p.m. eastern now. no comment so far from the faa. >> hopefully it's a compliewrt glitch and nothing more than that. half past the hour, back to nicole on the floor of the new york stock exchain. nicole, bow's pulling back, and
jcpenney, what is that doing? >> we have a lot going on here. of course, yesterday, the dow sold off late in the day, understandably, down 265 points yesterday. we regain some of the losses, up 113 points at the moment, but losing steam here on wall street; however, how do see the nasdaq and s&p holding on to gains of more than 1% each. the dollar is weaker, and oil and gold mixed. oil training to gain after losing significantly day, up $17. watching jcpenney, as you noted, very closely. the s&p's up 17 points, jcpenney in there helping the s&p along. it's up about 6% at the moment. now, granted, we watched jcpenney over the last year struggling. ron johnson's out, changing of the guard now, brought in the former ceo to try and move this company along with new ideas and ways to get it back on track. a report said jcpenney's actually exploring ways to
borrow cash ens real estate holdings. we heard whispers about that happening, separate units, and this comes -- it did happen its reinvolving credit facility, but we see today, jcpenney a winner on the s&p 500 where we have a lot of winners. >> nicole, we'll see you in 15 minutes. >> all right. president obama calling the bombings in boston an act of terrorism as the fbi continues to search for a suspect. rich edson outside the white house has breaking news on the investigation, rich, what is it? >> we do just in the last minute from our producer saying federal law enforcement officials confirmed to fox they have just ruled out that saudi man as a suspect in the bombing. remember, he had been questioned. he was never named as a suspect. the 20-year-old saudi here on visa, and law enforcement officials confirm he is ruled out as a suspect. this after a day of briefings at the white house. the president meeting earlier
today with the national security team speaking earlier today. we'r from security officials, says fox news, remanents of a pressure cooker found on-site, a style first seen in afghanistan, but yet too early to determine if this is a type of device from overseas. also, some officials confirming only two bombs found in boston, the two that exploded. there is no one in custody at this point, but officials say they continue to question many people. the president says this is a terror investigation, mincing no words there. he says when it comes to everything else, plenty of unknowns. >> what we don't yet know, however, is who carried out this attack or why, whether it was planned and executed by a terrorist organization, foreign or domestic, or was the act of an individual? that's what we don't yet know, and, clearly, we're at the beginning of our investigation.
>> heightened sense of security continues here in washington at the white house on capitol hill as flags are lowered to half staff at the white house earlier this morning. back to you. >> rich edson, thank you. >> all right. the boston bombing could lead to a slow down, and believe it or not, more taxes, well, sort of. the next guest joining us now, douglas holtz-eakin, currently the president of the american actions forum. all right, doug, i want to first let everyone know you're a marathon runner, or you were. >> thirty years, ran many marathons, wanted to run the boston marathon, was never really good enough. >> what was that like watching yesterday? you watched it live. >> a live stream, i was supposed to work, but like many americans, watched the marathon, and it was heart rending, and, you know, you share the confusion of those there. you couldn't understand what was going on.
sundayenly -- suddenly the emergency medical technicians show up, the police show up, and the chaos. >> can't be more vulnerable than a runner, nothing on the body at the time, and you don't understand why. that brings us to your take on this that this could cost americans money? >> you know, we don't much. we don't know the cause of this. we certainly don't know the ramifications down the line, but these kinds of events are the pebble in the pond. there's the impact on boston. there's the impact on cities like boston and events like the marathon. destination cities, large public events, tourism, it hits the tourism industry, the hotels, restaurants, cabs, and then past that, the thing i worry about, having, you know, been through september 11, 2001, is what precautions need to be taken to secure, not just public events, but the economy in the transactions of the economy from terrorism? that's an expensive undertaking. that's like a tax on everything
we do. it's not a productive activity. >> i felt it coming into manhattan today. there were more police officers at the bridges and tunnels, people were pulled over on the side of the roads checking cars. took me a long time to get here today because of that. that's out of pocket. >> yeah, it's money. it's time. you spend more time in transitions between home and work, on travel, and think in the past decade of the amount of money this country spent on making people safe. that's an important endeavor in and of itself, but that's not hiring people or investing in new technology. that's not growth. that's a cost. >> after 9/11, or in 2011, we were just on the precipice of the economy turning, and then 9/11 hits. >> 9/11 hits, the recession, people remember that. that was the first of the jobless recoveries. think back. it took a long time. it was during that period we were trying to build a regulatory apparatus to make people safe, a physical app apparatus, and it's not a
coincidence we had a hard time creating jobs. >> you know, the administration trying hard to focus on the economy. does it struggle to do more -- i feel sometimes they can't do more than one thing at a time. all attention goes back to the securing the people, and are we going to forget about how we try to make the economy better? >> i hope not. it was certainly a concern back in 2001. >> right. >> i worry about it at the time -- i worry about it now, especially. this comes on top of what are already big regulatory pushes, big tax increase, and the economy's not doing very well. the timing is particularly troublesome, and they hope it's an isolated and with all do respect to those harmed, a minor incident. >> i mean, what do you hope happens within the administration now to change things. that are they not doing correctly? >> i think they need a greater commitment to long-term growth
strategies. targeted temporary policies, have an infrastructure, a tax credit, spend, don't worry about deficits. you know, have a plan for tax reform, the spending programs, ensure the debt's not going to explode. be cognizant regulations have benefits, but costly as well, and just say we're committed to growing over the long term, not for this month or in this bill, not when we think of it between other events. have that commitment. >> douglas holtz-eakin, thank you. >> thank you. >> doug has a long term plan, that's for sure. >> breaking news with boeing. the head. faa says they completed all tests and analysis of the redesigned 787 batteries. they hoped to get the commercial fleet back in the air this month. that seems to be, if accurate, seems to be a step in the right direction. >> we'll see. breaking news now in oil, closing up one penny at $88.72 a
barrel. today's slight gain snaps a three day slide for oil. >> gold rebounds from the biggest one-day drop in more than three decades. is now the time to get in or get out? we got the answer. >> as we do every day at this time of the day, look at the 10- and 30-year treasuries as we head to break. we'll be right back. ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim. from td ameritrade.
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>> this is your fox business brief, strong corporate earnings, encouraging reports on home building and low inflation are also pushing the market higher. a new york federal judge rejected trustees bid to block the state's $410 # million settlement with hedge fund manager. the judge said the card waited far too long to intervene after the attorney's office moved against merkin, accused of secretly steering money to madoff. the recession is still affecting how people shop. that's latest from the fox business network, giving you the power to prosper.
>> price of gold is rebounding from a two-year low, and its biggest selloff in three decades. what's next for the precious metal? bringing in edward mere, senior correspondent at iatlfc stone. thank you for being here. >> thank you. a lot of people are saying you have goldman sachs saying gold is time to get out. some analysts say we'll see gold at $1200 an ounce. you disagree with them, why? >> well, i'm not sure i disagree with them. in our last report, we have been very cautious op gold, especially given that it's broken key support levels. it's trading between 15-25 to 1800 in the last 18 months, and
everybody's been waiting for if -- for it to pick up steam and move ahead. it's not. able to do it. the bottom fell from the market in the mast few days issue and i think we'll head lower from here. >> yeah, i think there's a lot of people who agree with you. is one of the reasons we are lower hedge funds bought gold, need out, and they have not liquidated? >> that's partly one of the factors. of course, we won't know for a few more weeks until the initial filings come out. there's a lot of money tied up in the physical atfs, and, of course, as people get out, especially the big hedge fund managers, that drives the market even more lower than it normally would. plus, the additional factor of margin call, those who support other losing positions. you have a combination, a cascading effect. that's why we sold off $200 in
two days, quite an incredible drop. >> i was reading one account of why we saw the big drop is that there was one fund, apparently, sold a huge number of futures. might we see that again? usually, don't they do this slowly so as to avoid panic and retain some price stability? >> it's hard to say. i mean, it takes all sorts of shapes and forms. it's possible they are out. you know, you sort of could have had a selling climax on monday, but we'll have to just see what happens. certainly, the market feels very fragile right now. it doesn't seem to have bottomed out. we'll still have more volatility and then perhaps resume the trend lower again. >> i have to ask you this for retail investors. they buy gold etf, worried about inflation, but inflation just, you know, i think it's paul who says inflation that has not come to haunt us, not yet, and not coming soon. if he's accurate, it's time to get out of gold, wouldn't it?
>> yes, it would be. inflation, if you look at the western countries, it's running at 2%. in emerging market inflation is 6%. the last time gold spiked like this in 1980, we were running a 20% inflation, so these are not the types of inflation numbers that can really ignite the market, but what drove the latest rally was investorring so worried about all this easing coming into the system they kind of got into gold in anticipation of inflation and it's like a mirage, not happening. >> as people point out, too, a 12-year run on gold at least in 2001 when it was in the $200 range. what should i look for if i'm someone who eventually wants to get back into gold? what should i look for, and what would be any trigger to make that play? >> you know, it's really hard to pick a bottom. we kind of look at some charts, and they give us a little bit of a clue. the various studies we're
looking at suggest around 1285 as the next level where we could see some support coming in. other technicians look at kind of a retracement. in other words, they take the -- they take the average between the high price, which was 1900, and the low price, $300, ten years ago, take a 50% average of that. that brings you down to around 1 # 100, so it's hard to say, but those are some gauges. >> very quickly, i know a lot of people raise the possibility of cypress could sell off gold to pay debt, but i thought their holdings were so tiny it wouldn't impact the price of gold. was i wrong or is that something investors should ignore should cypress sell? >> you're right. sigh press has ten tons, not a big deal. i think it was the straw that broke the back along with some other things including deteriorating technicals. >> all right. thank you very much for joining us, edward,ic, from the
international ftc, is it -- intlfst stone. gil get the initials right sometime. thank you. >> thank you. >> john is standing by. you know, we just heard we did not have a suspect now in the boston bombing. markets are pulling back. 1 there a correlation? >> there is a correlation there. people want information, you know, whether we talk about information that comes out of washington about economic data or this headline that's there. people want information, but we have to understand there's a slow output of information to take a long time to figure it out, and the fbi and all of them are careful, don't want to spook anybody yet. i think we have to keep an eye on that, but we can't cor lit the market on those coming out
of bos ton because there's too much information. we don't know what's real and what's not. >> today is about earnings, about economic data. it's going to be so interesting how the market trades up, trades in the last hour here. i think it is going to trade higher. we've seen momentum there, balances on the bell, and s&p 500, there is stocks, and i think right now we're looking at how this focuses here, earnings after the bell, economic data tomorrow morning, and like we talked about earlier, financial earnings tomorrow morning, bank of america and american express, pnc so important just for the sentiment of the market, whether they trade is irrelevant, just a sentiment to get us back to feeling comfortable about the market to continue to move higher. >> you're right. >> it's about sentiments at the end of the day. thank you, sir. >> thank you for following gold, the rally is stalling. breaking news on american airlines commenting on the
system-wide grounding, commenting on twitter saying, american's reservation system is experiencing intermitten outages. we're working to resolve the issue and apologize for any inconvenience. please yous to check gates and times. all flights grounded until 5 p.m. eastern time. earlier, they were grounded until three o'clock. it's now moved to 5 p.m.. fox business keeps you posted. a lot of people trying to travel today, and it's going to be a headache. >> it is, but is the police to go. security tightening in the country, chicago where jeff flock has a live report from that city's financial district. we'll be right back. ♪
♪ >> major cities in the country tightening security potentially terror target the in the wake of yesterday's bombings in boston. jeff flock in the chicago with the latest. hey, jeff. >> tracy, not as tight as it could be. this is the corner of whacker and jackson boulevard in chicago. it's home to the sears tower. maybe we have another picture of what use to be called the sears towerment i'm old, but it's the willis tower now that was shut down after 9/11, and, you know, we're on the edge of the financial district here. look audiotape there, maybe if bob pans up, that's sir iring's s, the goddess of agriculture and grain on the top of the building now home to the cme. if you look at inside, though,
not intense security, and as i said, the markets, i think, cheered by this, indication, perhaps, of not any great fears of any wide ranging plot out there. talking to some security experts though, look around a place like this on the streets of chicago, you don't see a lot of trash cans which, as we know, was the repository in which they placed the bombs. another thing they think about pulling off, though, in times like this is these newspaper boxes. chicago tribune box and all the other free and newspapers you got to purchase, you can open them up, and, also, perhaps put something inside. time note from the mayor, saying chicago is not a threat, not believed to be any kind of threat out here although there's high profile targets here,3 still, the tallest building in the world, the willis tower, largest one to be completed. that one in new york at the
world tried center site is now the tallest in america. that's the latest from chicago. >> i call it the sears tower too. we're old together. >> all right. liz claman goes through the last hour of trading within 5 interview with the ceo of royal caribbean, the first since unvailing the new quantum cruise ship. you have to see the ship to believe it. sky diving, a ride that looks like the london eye, and liz has that all in "countdown to the closing bell" next. ♪ we know a place where tossing and turng have
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on the wings of lunesta. ♪ liz: the deadly boston bombings, businesses in boston and beyond not taking chancest chances. bomb sniffing jobs beefed up security as markets and gold bounced back. we have the latest on the investigation. goldman sachs, johnson and johnson reporting just as target
issues an earnings worng. looking ahead to yahoo. talk about a quantum leap, royal caribbean unvails the never before seen ride, quantum of the sea, carrying 4,000 passengers and bumper cars and sky diving. will it thrill investors? we have the ceo on opening day. "countdown to the closing bell" starts right now. ♪ good afternoon, everybody. i'm liz claman, the last hour of trading, and markets showing resilience in the face of trauma and tragedy, just 24 hours after the attack, look at the markets on the screen, they are charging back. these are stocks, 19, let me repeat, 19 stocks in the s&p with 52-week highs today, many of them all-time highs like kimberly clark, clorox
hershey's, mills, they are up now. coca-cola reporting better than expected earnings before the bell, and now that stock is jumping more than 5%. flip it over